Guiding advisers on the art and science of blending retirement income

Just SA, a leader in innovative retirement solutions, has released its latest white paper, A Guide to Blending Retirement Income, which aims to empower financial advisers with a practical, evidence-based framework to deliver sustainable retirement outcomes for South Africans.

Blending: The best of both worlds

The white paper covers the concept of blending annuities in retirement, which combines the security of guaranteed income from a life annuity with the flexibility and growth potential of a living annuity. This approach, delivered through a single, unified product structure, enables financial advisers to offer clients a holistic solution that balances income security and capital growth.

While several insurers have begun to recognise the value of blending as an optimal retirement income solution, few—if any—provide advisers with clear, actionable guidance on how much to blend for each client. Just SA stands apart by not only championing the blended approach, but also equipping advisers with practical tools such as Income Sustainability Maps and a simplified 3x3 matrix. These resources empower financial advisers to tailor solutions with precision, ensuring each client receives the right balance of guaranteed income and growth potential. This commitment to adviser education and client-centricity cements Just SA’s position as a true retirement income specialist.

Key takeaways for financial advisers

Income Sustainability Maps: Just SA’s proprietary mapping tool helps advisers visually diagnose when blending is optimal, based on a client’s age and withdrawal rate. These maps identify three zones (safe, risky, and danger) guiding advisers to the most sustainable income solution for each client.

Practical Frameworks: The white paper provides both theoretical and pragmatic approaches to determine the ideal blend percentage. A simplified 3x3 matrix allows advisers to match client age and drawdown risk profile to a recommended allocation, making complex decisions actionable.

Behavioural Insights: Recognising that barriers to annuitisation are often psychological, Just SA also addresses common biases such as loss aversion, present bias, and the endowment effect, and offers myth busters to help advisers reframe client conversations and drive better decision-making.

Innovation and Leadership: Just SA pioneered the blended annuity solution through partnerships with several significant financial services brands. By integrating unique investment and drawdown risk profiles, blending represents a significant leap forward in retirement planning, offering a curated, simplified approach that meets the evolving needs of South African retirees.

A call to action for the industry

“Blending is not just a product innovation, it’s a mindset shift,” says Bjorn Ladewig, Head of Distribution & Marketing at Just SA. “We invite financial advisers to leverage these insights and tools to deliver truly personalised, sustainable retirement income solutions for their clients.”

To download Just SA’s Guide to Blending Retirement Income white paper, click here.